Westpac has unveiled rates starting from 6.14% p.a. on its packaged Rocket Repay Home Loan, cutting more than a full percentage point from the previous rate.
The product includes an offset account and charges a $395 annual package fee.
Both owner–occupier and investor loans were affected in what marks the first round of cuts to Westpac's packaged variable rates since it dropped those on its basic Flexi First Option loan for refinancers in March.
Westpac's Flexi First Option – its no-frills home loan without an offset facility – offers rates as low as 5.84% p.a. (comparison rate from 5.85% p.a.) with no annual fee.
Wednesday's move comes shortly after the Reserve Bank of Australia (RBA) released the minutes from its April meeting, which culminated in a widely expected decision to hold the cash rate steady.
The meeting took place just days before US President Donald Trump announced his now-rescinded global tariffs – which weren't discussed in the minutes due to timing.
The minutes reveal board members believed May would be "an opportune time" to reconsider the cash rate, citing the upcoming release of inflation, wage, and labour market data.
Such expectations of further rate cuts – including some forecasts of a double cut in May – may have influenced Westpac's decision.
Notably, the cut was mirrored by Westpac subsidiaries St George, Bank of Melbourne, and BankSA.
Here are the new rates offered on Westpac's Rocket Repay mortgage offering:
Owner-occupiers: New Westpac offset home loan rates
For those taking out a mortgage to purchase or refinance their home, these Westpac rates could pique your attention:
| Product | LVR | Change | New rate | Comp rate* |
|---|---|---|---|---|
| Premier Advantage Rocket Repay Home Loan | ≤70% | -1.05% | 6.14% | 6.51% |
| 70-80% | -1.05% | 6.24% | 6.61% | |
| >80% | -1.05% | 6.54% | 6.91% |
Investors: Updated offset loan rates from Westpac
Meanwhile, investors might be drawn to these new home loan rates:
| Product | LVR | IO/P&I | Change | New rate | Comp rate* |
|---|---|---|---|---|---|
| Premier Advantage Rocket Investment Loan | ≤70% | IO | -1.4% | 6.60% | 6.84% |
| P&I | -1.4% | 6.34% | 6.71% | ||
| 70-80% | IO | -1.4% | 6.70% | 6.94% | |
| P&I | -1.4% | 6.44% | 6.81% | ||
| >80% | IO | -1.4% | 7.00% | 7.24% | |
| P&I | -1.4% | 6.74% | 7.10% |
How do Westpac's offset home loan rates stack up against other big four banks?
While Westpac's latest rate cut places its offset home loan rates in a more competitive position, they don't necessarily stack up against those offered on some of the big four banks' digital-only mortgage products.
Take ANZ Plus, for example.
The digital home loan – available exclusively to direct-to-bank refinancers – advertises rates starting at 5.84% p.a. (5.85% p.a. comparison rate) and allows an offset account for a $10 monthly fee.
Meanwhile, CommBank's Digi Home Loan promises access to a single offset account and interest rates starting at 5.90% p.a. (6.03% p.a. comparison rate*).
NAB lags behind in comparison, with its lowest offset home loan rate coming in at 6.54% p.a. (6.63% p.a. comparison rate*) – offered on its Tailored variable rate home loan product.
But there are plenty of seemingly more competitive offers out there from smaller banks.
Take Horizon Bank, for instance, which currently advertises rates as low as 5.64% p.a. (comparison rate 6.34% p.a.) on its Home Sweet Home Loan, which comes with an offset account.
The table below shows more market-leading home loans, each with offset accounts:
Advertisement
| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Additional Repayments | Split Loan Option | Tags | Row Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.79% p.a. | 5.83% p.a. | $2,931 | Principal & Interest | Variable | $0 | $530 | 90% |
| Promoted | Disclosure | |||||||||||
5.89% p.a. | 6.13% p.a. | $2,962 | Principal & Interest | Variable | $250 | $250 | 80% | Disclosure | |||||||||||||
5.89% p.a. | 6.14% p.a. | $2,962 | Principal & Interest | Variable | $248 | $350 | 70% | ||||||||||||||
5.79% p.a. | 5.80% p.a. | $2,931 | Principal & Interest | Variable | $0 | $0 | 90% | ||||||||||||||
5.75% p.a. | 5.75% p.a. | $2,918 | Principal & Interest | Variable | $0 | $0 | 90% | ||||||||||||||
5.74% p.a. | 6.19% p.a. | $2,915 | Principal & Interest | Variable | $0 | $530 | 90% |
| Disclosure |
Image by Bidgee on Wikimedia Commons
Share